Correlation Between Jacquet Metal and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and McEwen Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jacquet Metal and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and McEwen Mining, you can compare the effects of market volatilities on Jacquet Metal and McEwen Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jacquet Metal with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and McEwen Mining.
Diversification Opportunities for Jacquet Metal and McEwen Mining
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacquet and McEwen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Jacquet Metal is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jacquet Metal Service are associated (or correlated) with McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and McEwen Mining go up and down completely randomly.
Pair Corralation between Jacquet Metal and McEwen Mining
Assuming the 90 days trading horizon Jacquet Metal is expected to generate 14.8 times less return on investment than McEwen Mining. But when comparing it to its historical volatility, Jacquet Metal Service is 2.34 times less risky than McEwen Mining. It trades about 0.01 of its potential returns per unit of risk. McEwen Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 565.00 in McEwen Mining on August 30, 2024 and sell it today you would earn a total of 258.00 from holding McEwen Mining or generate 45.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Jacquet Metal Service vs. McEwen Mining
Performance |
| Timeline |
| Jacquet Metal Service |
| McEwen Mining |
Jacquet Metal and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and McEwen Mining
The main advantage of trading using opposite Jacquet Metal and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, McEwen Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in McEwen Mining will offset losses from the drop in McEwen Mining's long position.| Jacquet Metal vs. Lendinvest PLC | Jacquet Metal vs. Neometals | Jacquet Metal vs. Albion Technology General | Jacquet Metal vs. Jupiter Fund Management |
| McEwen Mining vs. Lendinvest PLC | McEwen Mining vs. Neometals | McEwen Mining vs. Albion Technology General | McEwen Mining vs. Jupiter Fund Management |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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